Wednesday, October 07, 2009
8:26:59 PM EDT

Bulls Look Ready to Rush In

by
James Brown

Bullish candidates were easy to find today. I wanted to provide a few extra symbols as possible trading ideas. Some of these candidates need to see a pull back while others need to see more of a bounce but they all appear to have potential. Here's the list: AFAM, APH, BLL, CBE, CDE, CLF, and MS.

NEW BULLISH Plays

Apartment Investment & Mgmt - AIV - cls: 14.52 chg: -0.03 stop: 13.49

Why We Like It:
AIV is a REIT that appears to be breaking out from its three-week consolidation. I'm suggesting bullish positions now. More conservative traders may want to wait for a close over $15.00 first. Our first target to take profits is at $16.50. Our second target is $18.50 but we may not have time. The plan is to exit ahead of the October 30th earnings report.

Annotated chart:

Entry on October 07 at $14.52
Change since picked: + 0.00
Earnings Date 10/30/09 (confirmed)
Average Daily Volume: 3.6 million
Listed on October 07, 2009

AZZ Inc. - AZZ - close: 39.73 change: +0.55 stop: 37.85

Why We Like It:
AZZ is an electrical equipment maker. The stock's recent correction found support at $38.00 and now it's on the rise again. The trend is up and the P&F chart points to a $59 target. I'm suggesting readers buy this bounce with a stop at $37.85. Our first target is $44.00. Our second target is $47.50.

Why We Like It:
Networking stocks were some of the best performers today. That may have been due to news that Ciena was buying part of Nortel but overall the sector was showing relative strength. FFIV, which has been consolidating under resistance near $40.00 for about five weeks has finally broken out. I'm suggesting readers buy FFIV on this move. Our first target to take profits is at $44.50. I'd like to aim higher but we may not have time. Earnings are in a couple of weeks.

Annotated chart:

Entry on October 07 at $40.63
Change since picked: + 0.00
Earnings Date 10/21/09 (unconfirmed)
Average Daily Volume: 1.2 million
Listed on October 07, 2009

Petrobras - PBR - close: 46.19 change: +0.27 stop: 43.70

Why We Like It:
PBR, who's real name is Petroleo Brasileiro, is one of the biggest companies in the world. This oil and energy company is back to retesting resistance near $46.00-46.50 and this time it looks ready to breakout.

I am suggesting readers buy PBR with a trigger at $46.80. If triggered our first target is $52.50. Please note that there is some resistance at $50.00 and I would expected a pull back on the initial test of the $50 level. Our second target is $59.00. The P&F chart is bullish with a $63 target.

Annotated chart:

Entry on October xx at $xx.xx

VisionChina Media - VISN - close: 8.53 change: +0.62 stop: 7.45

Why We Like It:
This play is for the gunslingers out there looking for a high-return trading idea.

VISN has been stuck trading sideways in the $5.00 to $8.00 range for almost a full year. The stock finally broke out above this level today. Normally I would hesitate to chase a 7.8% move like this but with the close over $8.00 this stock could take off.

This is a very aggressive, higher-risk trade. Shares are arguably short-term overbought. We don't know how this stock will react when the Chinese stock market reopens on October 9th after a week of being closed for holiday. Technically this is a bullish breakout. While I couldn't find any short interest data if there is any short interest I suspect there could be a rush to cover.

I would use very small position sizes. Our first target is $10.90. Our second target is $13.75. The Point & Figure chart is bullish with a $15.00 target. My time frame is several weeks (maybe year end).